Investors should focus on central banks this week, as we get minutes from Fed, ECB and RBA. Moreover, President Draghi is to speak at European Parliament which will be a key figure in calm Monday’s calendar. It’s also worth mentioning that due to Thanksgiving on Thursday the activity on markets could be subdued. Moreover, Black Friday sales results will be an indicator of the strength of the US consumers.
2:00 pm BST – ECB, Mario Draghi in European Parliament. When the ECB sent a fairly dovish message at its last meeting a perception was the Bank was afraid of too strong euro. Meanwhile, the euro has appreciated against the majority of currencies lately. A hearing of Mario Draghi at the European Parliament could provide him a floor to talk the currency down if he chooses so.
What to watch this week beyond Monday?
Central banks minutes: RBA (Tuesday, 0:30am BST), Fed (Wednesday, 7pm BST), ECB (Thursday 12:30pm BST)
Monetary policy minutes are relevant for traders because they often include more information than statements that are released just after the meeting. In the US the minutes will tell us if December’s hike is a “done deal” and could shed more light on monetary policy next year. Even more important will be minutes from the ECB as they could reveal why the Bank did not decide to signal termination of the QE program. Affected markets: EURUSD, AUDUSD
Speech from Janet Yellen/Fed (Wednesday)
In case of the Fed markets are more keen to hear from Powell (that will become the next chair in 2018) but Yellen still has a lot of clout on the markets. Affected markets: EURUSD
Black Friday in the US (Friday)
Thanksgiving Day is a huge holiday in the US but it’s Black Friday that matters for the business! A day when shoppers open the Christmas shopping season and try to lure customers through various discounts and offers is often seen as a good sample of consumer strength. Affected markets: US30, US500
EURUSD has managed to defend a local support, which may bode well for buyers. Source: xStation5